The American Dream is alive and well in Generation Y; its entrepreneurial spirit as strong as any generation since the so-called Greatest Generation. It would be a shame if the inevitable erosion of hope in crowdfunding turns entrepreneurs away.
In the course of its first year any startup will confront issues it had not anticipated. Decisions will be made that are wrong. Every new business is different, and every one will encounter its own unique problems. Here are the lessons we learned from our mistakes at CircleUp in our first year.
According to the Kickstarter's data, there was $274 billion collected last year (+238 percent from 2011). In comparison, VC's invested $26.5 billion in 2012 (-10 percent from 2011). Do you see the difference?
Equity crowdfunding (or crowdfund investing) is not operational and not legitimate in the United States yet and for those who are growing comfortable with the concept, there are three essential facts to remember.
Entrepreneurs in the U.S. are waiting with their hands up for the SEC to arrive with new solicitation and general legislation rules that would allow them selling shares over the Internet utilizing the equity- based crowdfunding model.
By making it possible to sell equity (shares of stock), this will open the door for more investors to get involved and fund private businesses. This will facilitate many more businesses coming into the market, because they will finally have access to the capital they need to get started.